Business
Galleon Gold Closes the First Tranche of a $7.5M Oversubscribed Private Placement of Convertible Debentures
Toronto, Ontario--(Newsfile Corp. - July 9, 2025) - Galleon Gold Corp. (TSXV: GGO) (FSE: 3H90) ...
About this update from Galleon Gold Corp
[{"type":"text","content":"Galleon Gold Closes the First Tranche of a $7.5M Oversubscribed Private Placement of Convertible DebenturesToronto, Ontario--(Newsfile Corp. - July 9, 2025) - Galleon Gold Corp. (TSXV: GGO) (FSE: 3H90) (the \"Company\" or \"Galleon Gold\") is pleased to announce that it has closed the first tranche of its non-brokered private placement offering of convertible debentures (the \"Offering\") previously announced on July 2, 2025 and July 7, 2025. The Company has issued 130 convertible debentures (the \"Debentures\") for gross proceeds of $6,500,000. The remaining subscription of $1,000,000 is expected to close shortly.Comment from the CEODavid Russell, CEO and President of Galleon Gold comments, \"We would like to welcome our new investors and thank the current shareholders who also participated in the Offering, including Eric Sprott and Michael Gentile. We look forward to providing updates on the West Cache bulk sample program as we start the surface development.\" The OfferingThe Debentures have a term of 36 months (the \"Term\") from the date of issuance, bear interest at a rate of 8.0% per annum payable in cash or Common Shares at the option of the investor at the end of the Term. The Debentures are convertible into common shares of the Company (the \"Common Shares\") at $0.30 per share (the \"Conversion Price\").At any time during the Term, each holder of Debentures may elect to convert any portion of the principal amount of the Debentures into Common Shares at the Conversion Price. If an investor exercises the Debentures prior to the end of the Term the accrued interest to that date will be payable in Common Shares and the price will be based on the higher of the average closing price of the last 20 trading days or the closing market price.Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, and an insider of the Corporation, acquired 20 Debentures for $1,000,000 and an officer of the Company also acquired 2 Debentures under the Offering for $100,000. The participation of the insiders in the Offering constituted \"related party transactions\" for the purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company is relying on the exemptions from the formal valuation and minority shareholder approv...